THIS WEEK'S MUTUAL FUND STORIES

So it was notable this week when Fidelity Investments, the No. 1 U.S. fund company, recruited a new manager to run its flagship Magellan Fund after several years of disappointing returns and shareholder redemptions.

Harry Lange has posted strong results at two of Fidelity's growth-stock funds, and now he's being asked to do for Magellan -- once the domain of legendary investor Peter Lynch -- what retiring manager Bob Stansky couldn't.

Can Magellan sail swiftly again? Our lead stories this week answer that question and ask others about the $52 billion fund, including Chuck Jaffe's observations about why Stansky had to go and Mark Hulbert's discussion of whether fund managers really matter.

Other features look at factors that bond-fund investors are able to control -- and the things they can't. Plus, Vanguard raises investment minimums on retirement funds, a market sentiment indicator points to cash over stocks, and Chuck Jaffe imagines a fantasy league for fund investors, on this week's Mutual Funds page.

Fidelity's crown jewel was in need of polishing, but only for a new head to wear.

Jonathan Burton, investments editor

Magellan's manager moves

After several years of seeing investors desert its flagship mutual fund in response to lackluster performance, Fidelity Investments is changing skippers for the giant Magellan Fund. See Fundwatch.

Can Magellan be rescued?

Harry Lange is stepping up to the big league. Lange has posted excellent results with the pair of growth-stock mutual funds he's managed at Fidelity Investments; now he's being asked to do the same with Magellan Fund, the Boston-based fund giant's sagging flagship. See full story.

Why Stansky had to go

In announcing his retirement, Robert Stansky was able to momentarily do something for the Fidelity Magellan Fund that he mostly failed to do in his decade at the helm. See Chuck Jaffe

Do fund managers matter?

It's only been one day since it was announced that Robert Stansky is going to be replaced as Fidelity Magellan's manager by Harry Lange, and already the investment discussion boards are filled with reactions about whether the change is a good idea. Perhaps everyone is making too big a deal of the change. See Mark Hulbert

Yield signs for bond-fund investors

Instead of worrying about economic factors out of their control or what interest-rate moves the Federal Reserve will make, bond-fund shareholders should focus on three things they can do something about, such as expenses, taxes and fund size. See Mutual Understanding

Sector rotation

Exchange-traded funds that mirror market sectors are gaining popularity, as investors embrace broad industries rather than shoulder the risk of individual stocks. See ETF Investing

Vanguard triples IRA fund minimums

Vanguard Group, the second-largest U.S. mutual fund firm, on Tuesday tripled the minimum investment needed to open new individual retirement accounts, a move analysts said will help Vanguard cut costs as it tries to fend off price challenges from rivals. See full story.

Funds' grim October

Rising concern about inflation and interest rates stunted U.S. stock mutual funds in October, and a closely watched market-timing indicator suggests that cash will continue to outperform stocks. See FundWatch

Putnam's decline continues

Putnam Investments suffered declining revenue and assets under management in the third quarter as the mutual fund giant continued the struggle to put a fund-trading scandal behind it, its parent company said. See full story.

Hard line on soft dollars

The Securities and Exchange Commission is finally attacking a legal form of kickback that has plagued the financial industry for years, allowing money managers to use their customers' trades to pay for computers, software, research reports and other items that in years past included limousine rentals and magazine subscriptions. See Thomas Kostigen.

Rotisserie returns

For investors trying to get a better handle on choosing and managing an investment portfolio, here's an idea that is long overdue: Fantasy mutual fund leagues. See Chuck Jaffe.

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